United Sees Lower Capacity,
But Strong Revenue Gains

By

Kevin Kingsbury

Updated March 20, 2008 3:02 p.m. ET

UAL Corp. said first-quarter capacity will come in at or below predictions the United Airlines parent made two months ago, but passenger-revenue growth is seen nearly tripling the rate of cost increases, excluding surging fuel expenses.

The company expects flat capacity at United and a 0.8% drop at its regional business. UAL's January forecast was flat to up 0.5% at United and up as much as 1% at the regional operations.